In today’s world, having a good health insurance policy means having a safeguard against the high expenditures of medical care. It has become essential for the modern man to have peace of mind as it guarantees access to quality healthcare and financial compensation in exchange for affordable premiums.
This blog will discuss what benefits you can enjoy with a health insurance plan, how to choose the right plan, and what you can do to mitigate some challenges many Indians face due to a lack of awareness while getting an insurance policy.
What is a Health Insurance Policy?
Health insurance is an agreement between a policyholder and the insurance provider whereby the insurer undertakes a guarantee to reimburse for healthcare costs if you (or anyone who is insured under the same policy) meet with an accident or fall ill that leads to hospitalisation. Moreover, insurance providers have tie-ups with eminent hospitals from where you can avail of cashless treatment.
If you prefer a hospital that is not a network hospital of your insurance provider you have the provision to file a reimbursement claim and get the money back after you have received treatment from that hospital. The government also promotes opting for health insurance policies by giving you tax benefits.
What Are the Benefits of Having a Health Insurance Policy?
Let us take a look at the advantages a health insurance policy can provide you:
● Cashless Treatment
Having one of the best health insurance policies in India lets you receive cashless treatment in your preferred hospital as they offer a huge network of hospitals.
● Pre and Post Hospitalisation
You can get a reimbursement for up to 60 days of pre-hospitalisation expenses and up to 120 days of post-hospitalisation costs depending on your plan.
● Medical Checkup
Your insurance company will also encourage you to have health checkups so that you can maintain your well-being and make fewer claims in the long term.
● Tax Benefit
Under section 80D of the Income Tax Act, you get to enjoy tax benefits on health insurance premiums.
● Room Rent
Depending on the plan your health insurance policy can also cover the room rent in case you need hospitalisation.
● Transportation Charges
The insurance policy also pays the ambulance charge if the insured person has needed it during his/her hospitalisation.
Tips to Choose the Best Health Insurance Plan
Here are some tips that you can follow to easily choose the best health insurance plan for yourself and your family:
1. Wide Coverage
To have wide coverage is a must for the plan you are going to buy, but going for the most coverage may not be wise financially. Choose a plan that fulfils your coverage requirements.
2. Sum Insured
By rule of thumb, you should at least have a sum insured that is 50% of your annual income. Consider your income and your coverage needs to select the appropriate sum insured.
3. Customisation Options
Look for plans that allow you the necessary flexibility (for example, adding your family members, modes of premium payment, etc.) and take care of both your long-term and short-term needs.
4. Co-payment Clauses
You should always prefer a plan that has a low co-payment clause. A plan with no co-payment clause can be excellent too.
5. Waiting Period
Usually, all health insurance plans have waiting periods (a period when you cannot make claims). Learn about the waiting period for the plan you are opting for to make an informed decision.
6. High Claim Settlement Ratios
Claim Settlement Ratio or CSR can be read as an indication that the chances of your claim settlement are higher.
7. Lifetime Renewability
When you become older purchasing a policy will become much more expensive, so, the feature of lifetime renewability is excellent for continued protection.
8. Compare Multiple Plans
You should compare multiple plans from reputable insurers and compare their coverage, premiums, and so on before coming to a decision.
What Are the Challenges in Spreading Health Insurance Awareness?
Health insurance itself can remove various healthcare challenges for many people. However, the main challenge the health insurance industry faces is spreading awareness.
Here are some of the reasons why spreading awareness about health insurance among Indians is difficult:
- Illiteracy coupled with a lack of awareness in both rural and urban areas makes people ill-prepared for medical emergencies.
- People have many misconceptions about health insurance plans, such as health people do not need it, and many claims get rejected.
- 28% of the population of India lives below the poverty line whose main priority is food and sanitation and not financial security during medical emergencies.
- The lack of healthcare professionals also contributes to the lack of awareness among the Indian population.
Remember, if you get a chance where you get to educate someone about health insurance plan’s benefits it will do them and many more a favour that they clearly deserve.
The Bottom Line
Overall, health insurance policies provide numerous benefits provided you purchase a plan that suits your needs and financial condition. While it is very much beneficial, spreading awareness remains a challenge. However, there is hope that stakeholders will work together more effectively and the vision of comprehensive health coverage for all will become a reality among Indian customers.
